First appeared in English in 1955

First used in Germany in 1925 (relates to book)

It reflects the uncanniness of people and our modern technological environment.

Uncanniness:
having or seeming to have a supernatural or inexplicable basis; beyond the ordinary or normal; extraordinary: uncanny accuracy; an uncanny knack of foreseeing trouble. mysterious; arousing superstitious fear or dread; uncomfortably strange: Uncanny sounds filled the house.

Used by artists originally by inspired Italian writer  Massimo Bontempelli
to write a magazine in 1926.

https://en.wikipedia.org/wiki/Magic_realism

Another website says:
first applied in the 1940s by Cuban novelist Alejo Carpentier, 
https://www.britannica.com/art/magic-realism

And Another:
According to Flores, magical realism began with a 1935 story by Argentine writer Jorge Luís Borges (1899-1986).
https://www.thoughtco.com/magical-realism-definition-and-examples-4153362